On April 1, the U.S. Department of Labor’s Wage-Hour Division proposed a new rule to update and clarify the Department’s interpretation of joint employer status under the Fair Labor Standards Act.
The Department proposes to adopt a four-factor test assessing whether the potential joint employer:
The Department proposes to adopt a four-factor test assessing whether the potential joint employer:
- Hires or fires the employee;
- Supervises and controls the employee's work schedule or conditions of employment;
- Determines the employee's rate and method of payment; and
- Maintains the employee's employment records.
According to the Department, the proposed changes are designed to promote certainty for employers and employees, reduce litigation, promote greater uniformity among court decisions, and encourage innovation in the economy.
The Department is taking comments on this proposed rule until June 10, 2019. You can find the complete language of the proposed rule here.
You may submit comments, identified by Regulatory Information Number (RIN) 1235-AA26, by either electronic comments through the Federal eRulemaking Portal at http://www.regulations.gov or by mail to Division of Regulations, Legislation, and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S-3502, 200 Constitution Avenue NW, Washington, DC 20210. Please submit only one copy of your comments by only one method. All submissions must include the agency name and the RIN identified above. Please be advised that comments received will become a matter of public record and will be posted without change to http://www.regulations.gov, including any personal information provided.
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